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Georgia Rate Adjustment Mechanism

On February 21, 2017, Atlanta Gas Light received approval from the Georgia Public Service Commission for an alternative ratemaking mechanism that regulates our base rate charged to customers through natural gas marketers. The new rates take effect March 1, 2017.

The Georgia Rate Adjustment Mechanism (GRAM) has been in use by the PSC since 2011 to regulate the rates of a different investor-owned regulated utility in Georgia and has proven to be one of the more transparent rate mechanisms in the country.

On March 1, 2017, The GRAM mechanism will result in an average increase for the average residential customer of $.90 per month. An additional $0.81/month (on average) increase associated with company’s Pipeline Replacement Program (“PRP”) will also take effect March 1, 2017. The total average rate impact to a residential customer bill is an increase of approximately $1.71/month and it will appear as an adjustment to the AGL base charge.

The Georgia Rate Adjustment Mechanism (GRAM) adjusts rates up or down based on quarterly and annual comprehensive regulatory reviews.
  • The reviews include historic data, inflation and other changes in business conditions and company performance. Because the review is a transparent, continual process, GRAM results in rate adjustments that reveal real-time changes in factors that influence utility rates.
  • GRAM also reduces the cost and resources necessary to prepare and review traditional rate cases.
  • Georgia Public Service Commission retains the right at any time to hold hearings in consideration of reviewing and adjusting the utilities Return on Equity and other factors that influence base rates.
The GRAM mechanism will result in a $0.90 monthly increase for the average residential customer beginning March 1, 2017.
  • The increase, the first for the company since 2010, is attributed to higher compliance and operating costs, including employee expenses.

An additional $0.81/month (on average) increase associated with company’s Pipeline Replacement Program (“PRP”) will also take effect March 1, 2017.
  
  • The PRP surcharge was previously approved by the Commission and was not part of the scope of the GRAM rate change.
  • The PRP surcharge assists AGL with recovery of expenses incurred relating to replacement of bare steel and cast iron pipe on its distribution system.
  • PRP surcharge will continue to be included as part of the AGL base charge shown on customers’ bills (i.e. not usage-sensitive)
View our bill calculator for more details regarding bill impact.
 
Note that the Senior Citizen Low Income Discount remains about $14/month for qualifying customers.